Farmers & Merchants Bancorp(FMAO) - 2024 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2024 increased 36.4% to $6.5 million, or $0.48 per share, compared to $4.8 million, or $0.35 per share in Q3 2023[2] - Stockholders' equity increased 10.6% to $335.4 million, or $24.48 per share, compared to $303.2 million, or $22.19 per share a year ago[13] - Comprehensive income for the quarter was $15,731,000, compared to $7,682,000 in the prior quarter, indicating strong performance[19] - Basic earnings per share for the quarter was $0.48, up from $0.42 in the previous quarter[19] - Income before income taxes for the quarter was $8,109,000, compared to $7,159,000 in the previous quarter, showing growth[19] Asset and Deposit Growth - Total assets reached a record $3.39 billion, up 4.8% year-over-year, while total deposits increased 4.3% to a record $2.68 billion[2] - Total assets increased to $3,389,185 thousand as of September 30, 2024, up from $3,322,633 thousand at June 30, 2024, representing a growth of 2.01%[22] - Total deposits rose to $2,684,813 thousand, an increase of 1.65% from $2,641,090 thousand in the prior quarter[20] - The company added over 5,600 new checking accounts since the beginning of 2024, enhancing its deposit base[4] Loan and Credit Quality - Nonperforming loans decreased significantly to $2.9 million, or 0.11% of total loans, compared to $22.4 million, or 0.89% a year ago[8] - The allowance for credit losses was 879.37% of nonperforming loans, indicating strong asset quality management[11] - The loan-to-deposit ratio improved to 93.6%, down from 97.2% a year ago, reflecting a conservative approach to loan demand[4] - Provision for credit losses on loans was $282,000 for September 2024, a decrease from $460,000 in September 2023, indicating improved credit quality[18] - The total provision for credit losses on off-balance sheet credit exposures showed a reversal of $(267,000) in September 2024, compared to $(76,000) in September 2023, suggesting a positive trend in risk management[18] Income and Expense Management - Total interest income for September 2024 reached $41,901,000, an increase of 13.5% compared to $36,359,000 in September 2023[18] - Net interest income before provision for credit losses was $21,589,000 for the three months ended September 2024, up from $19,662,000 in the same period last year, representing a growth of 9.8%[18] - Total interest expense was $20,312,000 for September 2024, compared to $16,697,000 in September 2023, representing a rise of 21.0%[18] - Total noninterest expense for the quarter was $17,425,000, compared to $17,296,000 in the prior quarter, reflecting a slight increase[19] - Employee benefits remained stable at $2,112,000 for the quarter, consistent with the previous quarter[19] Efficiency and Profitability Ratios - The efficiency ratio improved to 67.98%, down from 73.07% in Q3 2023, reflecting better expense management[2] - Return on average assets improved to 0.78% for the quarter ended September 30, 2024, compared to 0.69% in the previous quarter[22] - Return on average equity increased to 7.93% from 7.13% in the prior quarter, indicating enhanced profitability[22] - The net interest margin remained stable at 2.71%, consistent with the previous quarter[22] - The dividend payout ratio decreased to 45.99% from 52.35% in the prior quarter, suggesting a more conservative approach to dividend distribution[22] Interest Income and Yield - Total interest-earning assets increased to $3,145,151 thousand with an annualized yield of 5.17% for the nine months ended September 30, 2024, compared to $2,960,421 thousand and 4.57% for the same period in 2023[26] - Net interest income for the nine months ended September 30, 2024, was $63,082 thousand, resulting in a net interest margin of 2.68%, down from 2.77% in the previous year[26] - Loans increased to $2,561,774 thousand with an annualized yield of 5.66% for the nine months ended September 30, 2024, compared to $2,470,770 thousand and 5.12% for the same period in 2023[26] - The company reported a total interest income of $63,082 for the nine months ended September 30, 2024, compared to $60,061 in the previous year, reflecting growth in interest income[28]